Comment: Timestrip seals entry to North America

26th Oct 2009 14:56

Timestrip's announcement today of a new deal to supply its innovative products to the North American medical devices market was vague on details, but it was specific on expected revenues and the share price jumped by 10%.Timestrip makes labels for containers for food, medicines and other items that show how long they have been kept open and whether they have been kept at the right temperature.The firm expects the new deal - its first order to supply the patented Timestrip product into the Medical Device sector in North America - to generate revenues of at least $200,000 a year, which is £122,700 at current exchange rates.This compares with Timestrip's total revenues of £390,000 for the first half of 2009, so the additional sales will make a large contribution to revenues for the full year. However, given that Timestrip posted a pre-tax loss of £384,000 in the first half, the company is still some way from profitability. The firm said today that 'confidentiality restrictions prevent the disclosure of the nature of the device or the identity of the customer until after the product is officially launched in the first quarter of 2010.'The main selling point of Timestrip's products is that they reduce wastage, because they tell consumers if something is fit to use or not. It hopes that its move from consumer products into the medical market will help it profit from hospitals' need to economise in the current climate without compromising on healthcare provision. In a recent announcement about trials with the NHS to use the company's TimestripPlus to defend against 'temperature abuse' (to show if drugs have been kept at the wrong temperature) Timestrip said one hospital pharmacy reported a net saving of £4,000 over four weeks.In its half-year results, Timestrip said that success in selling its medical-related products internationally 'will play an important role in our goal of achieving profitability.' Today's announcement may be a step in that direction.